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Level 3 to buy TW Telecom for about $5.6 billion

Associated Press

Posted:
06/16/2014 06:47:36 AM PDT

NEW YORK -- Level 3 Communications says it has agreed to buy TW Telecom in a deal worth about $5.6 billion.

The Internet and telecommunications company says the acquisition will increase its local operations. Level 3 owns network and data centers around the world, while TW Telecom provides data and Internet and other services to businesses in the U.S.

Level 3 will pay $40.86 for each outstanding share of TW Telecom. As of April 30, TW Telecom had 137.9 million outstanding shares.

TW Telecom shareholders will receive $10 in cash and 0.7 shares of Level 3 for each share they own. The deal is expected to close in the fourth quarter.

Shares of TW Telecom jumped almost 12 percent to $40.55 in premarket trading while Level Three shares added 2 percent.